If the Federal Government Runs a Deficit and Borrows from Commercial

question 32

Multiple Choice

If the federal government runs a deficit and borrows from commercial banks,​
1) total deposits are not affected
2) total deposits are increased
3) excess reserves are reduced
4) excess reserves are decreased

• A)​1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

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Definitions:

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of the production costs that do not vary with the volume of production, such as rent for the manufacturing facility, salaries of manufacturing managers, and depreciation of factory equipment.

Selling Price

The price at which a product or service is offered for sale to a buyer.

Markup

The addition to the cost price of items to include overhead expenses and profits.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, overhead, and any other costs directly related to the project.